Golub Capital BDC, Inc. · NASDAQ:GBDC
Golub Capital BDC — Q2 FY2023 Earnings Presentation
26 slides from Golub Capital BDC's earnings presentation, May 2023
Slide 1: Golub Capital BDC, Inc. Earnings Presentation
GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED MARCH 31, 2023
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking statements, Such forward-looking statements may include statements preceded by, followed by which relate to future events or our future performance or financial condition. The or that otherwise include the words “may,”
Slide 3: Summary of Financial Results
Summary of Financial Results 01
Slide 4: Summary of Financial Results vs. Prior Quarter
Summary of Financial Results vs. Prior Quarter Quarter Ended December 31, 2022 March 31, 2023 Net Investment Income Per Share Net investment income per share $0.36 $0.41 1 Amortization of purchase premium per share 0.01 0.01 2 Adjusted net investment income per share A $0.37 $0.42 Accrual (reversal)
Slide 5: GBDC Performance Drivers
GBDC Performance Drivers O 2 GOLUB CAPITAL
Slide 6: Drivers of GBDC's FQ2 2023 Earnings
Drivers of GBDC’s FQ2 2023 Earnings Key Themes from Quarter Ended March 31, 2023 Key GBDC-Specific Takeaways ■ Overall, Golub Capital’s middle market borrowers ■ Record quarterly adjusted net investment income experienced continued strength in year-over-year before accrual (reversal) for capital gai
Slide 7: NII and Share Repurchases Drove a NAV Per Share Increase
NII and Share Repurchases Drove a NAV Per Share Increase from December 31, 2022 NAV Per Share Bridge $0.01 ($0.33) $0.41 ($0.03) ($0.04) $0.01 ($0.01) $14.71 $14.73 1 Adjusted NII: $0.42 Adjusted Net Realized & Unrealized Loss: ($0.08) December 31, Net Investment Reversal of Dividends Paid Net Reali
Slide 8: Summary of Financial Results for the Quarter Ended March 31, 2023
Summary of Financial Results for the Quarter Ended March 31, 2023 03
Slide 9: Summary of Quarterly Results
Summary of Quarterly Results Quarter Ended March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 Net Investment Income Per Share Net investment income per share $0.25 $0.32 $0.32 $0.36 $0.41 1 Amortization of purchase premium per share 0.02 0.02 0.01 0.01 0.01 Adjusted net
Slide 10: Portfolio Highlights - New Originations
Portfolio Highlights - New Originations – Total investments at fair value increased by approximately 0.6%, or $34.4 million, during the three months ended March 31, 2023. Quarter Ended March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 Select Portfolio Funds Roll Data (
Slide 11: Portfolio Highlights – Investment Mix
Portfolio Highlights – Investment Mix – The portfolio continues to be focused on first lien, senior secured loans to what we believe to be healthy, resilient middle market companies backed by strong, partnership-oriented private equity sponsors. Historical Investment Portfolio ($000) $6,000,000 $5,6
Slide 12: Portfolio Highlights – Portfolio Diversity as of March 31, 2023
Portfolio Highlights – Portfolio Diversity as of March 31, 2023 Investment Portfolio $5,486mm | 333 Investments | Average Size 0.3% Portfolio Composition by Seniority Diversification by Obligor Top 10 Investments 1% 5% 15% 8% First Lien Traditional Senior First Lien Top 25 94% One Stop Investments F
Slide 13: Portfolio Highlights – Economic Analysis: Positioned for Higher Interest Rates
Portfolio Highlights – Economic Analysis: Positioned for Higher Interest Rates 13.0% 12.0% 11.5% 11.0% 10.5% 11.1% 10.0% 9.2% 10.0% 9.0% 7.9% 7.7% 7.7% 7.5% 8.0% 7.3% 8.4% 6.7% 7.0% 7.4% 7.2% 6.1% 7.1% 6.9% 7.1% 6.0% 5.5% 5.1% 4.9% 5.0% 4.9% 5.0% 4.5% 4.5% 4.6% 3.7% 4.8% 4.0% 4.4% 3.0% 3.0% 3.6% 2.8
Slide 14: Portfolio Highlights - Credit Quality
Portfolio Highlights - Credit Quality – Fundamental credit quality as of March 31, 2023 remained strong with 87% of the investments in our portfolio at fair value having an Internal 1 Performance Rating of 4 or higher as of March 31, 2023. – Non-accrual investments at March 31, 2023 as a percentage
Slide 15: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings Internal Performance Ratings (% of Portfolio at Fair Value) At Fiscal Year End At Quarter End Rating 2018 2019 2020 2021 2022 December 31, 2022 March 31, 2023 5 6.4% 2.7% 6.1% 10.2% 4.6% 2.8% 1.1% 4 81.6% 88.2% 72.8% 80.7% 86.8% 86.5% 85.9% 3 11.0% 7.9% 19.7%
Slide 16: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (audited) (unaudited) (unaudited) Assets Investments, at fair value $5,426,159 $5,613,5
Slide 17: Quarterly Operating Results
Quarterly Operating Results Quarter Ended March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $88,679 $97,568 $119,925
Slide 18: Financial Performance Highlights
Financial Performance Highlights Quarterly Return on Equity and Quarterly Distributions (Last 5 Years) Regular Distribution Special Distribution Quarterly Return on Equity* 6.7% 4.0% 3.9% 3.8% 3.3% 2.3% 1.9% 1.9% 2.0% 2.2% 2.1% 2.8% 2.4% 2.6% 2.4% 1.6% 1.0% 0.6% 0.3% (10.5)% $0.44 $0.46 $0.12 $0.13
Slide 19: Long History of Strong Shareholder Returns
Long History of Strong Shareholder Returns 1 Investors in GBDC’s 2010 IPO have achieved a 9.3% IRR on NAV As of March 31, 2023 $31.63 $0.58 $16.32 $14.73 $14.63 Jun-17 Dec-18 Jun-20 Dec-21 Apr-10 Sep-11 Mar-13 Sep-14 Mar-16 Sep-17 Mar-19 Sep-20 Mar-22 Jun-10 Dec-11 Jun-13 Dec-14 Jun-16 Dec-17 Jun-19
Slide 20: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents – Unrestricted cash and cash equivalents and foreign currencies totaled $87.5 million as of March 31, 2023. – Restricted cash and cash equivalents totaled $50.2 million as of March 31, 2023. Restricted cash is held in our securitization veh
Slide 21: GBDC Has a Stable, Highly Flexible and Low-Cost Funding Structure
GBDC Has a Stable, Highly Flexible and Low-Cost Funding Structure GBDC Debt Capital Structure* Debt Outstanding Undrawn 1 Funding Source Commitment Par Commitment Reinvestment Period Stated Maturity Interest Rate Securitizations: 2018 Debt Securitization $408,200 $408,200 $— January 20, 2023 January
Slide 22: Common Stock and Distribution Information
Common Stock and Distribution Information 1 Common Stock Price Data Fiscal Year Ending September 30, 2022 High Low End of Period First Quarter $15.99 $14.86 $15.44 Second Quarter $16.10 $14.70 $15.21 Third Quarter $15.48 $12.67 $12.96 Fourth Quarter $14.35 $12.21 $12.39 Fiscal Year Ending September
Slide 23: Appendix: Endnotes
Appendix: Endnotes A GOLUB CAPITAL
Slide 24: Endnotes - Non-GAAP Financial Measures
Endnotes - Non-GAAP Financial Measures 1. On September 16, 2019, the Company completed its acquisition of GCIC. The merger was accounted for under the asset acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805-50, Business Combinations — Related Issues. U
Slide 25: Endnotes - Drivers of GBDC's FQ2 2023 Earnings
Endnotes - Drivers of GBDC’s FQ2 2023 Earnings 1. Please see the Q1 2023 Golub Capital Middle Market Report (which is available on Golub Capital’s website at www.golubcapital.com) for additional details. The Golub Capital Middle Market Report for Q1 2023 compared January 2023 and February 2023 reven
Slide 26: Endnotes - Portfolio Highlights Economic Analysis
Endnotes - Portfolio Highlights Economic Analysis 1. The weighted average cost of debt and weighted average net investment spread presented for the quarter ended September 30, 2021 exclude $3.6 million of accelerated capitalized debt issuance costs that resulted from the August 26, 2021 early redemp